In these August days, you might think that Volkswagen is a completely normal group. And not the largest and craziest economic structure in Europe. Last week CEO Herbert Diess, 63, traveled to Canada and signed an agreement to supply battery raw materials. “Working hand in hand with governments around the world is an absolute requirement to achieve our climate goals,” said Diess. The photos of the appointment: statesmanlike, even forward-looking. Federal Chancellor Olaf Scholz and Canadian Prime Minister Justin Trudeau are standing behind the car manager, who is holding the pen with a broad grin. On Tuesday, the manager in Hanover discussed the future of the factory there with employees. Business as usual? Not at all. Because now, on Wednesday, is Diess’ last day as VW boss, against his will.
A month ago, the VW supervisory board announced its dismissal effective August 31 and appointed Porsche CEO Oliver Blume as his successor. Very surprising for pretty much each and every one of the 670,000 employees. And probably also for Diess, after all that one hears. But he didn’t withdraw completely over the remaining meters, as pretty much everyone else would have done or had to do – such as former VW bosses Matthias Müller or Martin Winterkorn. No, Diess, internal name “HD”, pulls through to the end.
That’s either very diligent or maybe rather very cool, in any case extraordinary, they say at VW. Yes, seriously, the word “forgiving” is used more often. You hardly know that in Wolfsburg. And there is also an indication of what to expect from Blume, which most call Olli: a continuation of the familiar under different auspices. Because if there had been a really big revolution, the king would have had to leave immediately.
Herbert Diess, the provocateur and still boss at Volkswagen.
(Photo: Friedrich Bungert/Friedrich Bungert)
This Wednesday, the old boss’s last day at work, the new boss receives the most important employees in Portugal for the “GTMC”, the conference of top managers and (few) top managers. At the last such meeting, in Alpbach, Austria, Diess brought in the fiercest competitor via video conference: Tesla boss Elon Musk, of all people, explained their business to the dismayed VW executives, and because Diess then also encouraged his highly qualified people to make school presentations , the frustration was great again. The current GTMC agenda reads a bit vague, but one thing is certain: Blume is not about provocation, but about the sense of community.
The group strategy should continue to apply for the time being
“Volkswagen has pushed ahead with the transformation to e-mobility with great vigour.” On his last business trip to Canada, Diess chose the past tense, as if the transformation was over with his departure. In fact, the “New Auto” group strategy should continue to apply for the time being, according to Oliver Blume’s camp. The key points: By 2030, the share of e-car sales should increase to around 50 percent, and by then VW also wants to have established a lucrative robot taxi business. By 2040, almost all new Group vehicles should be emission-free, at least “in the main markets”. For Diess that meant: battery electric. Blume is likely to be less orthodox and include synthetic fuels and possibly also give the fuel cell a higher priority.
In terms of content, these are rather nuances, as are the organizational points: the two groups, “Premium” around the subsidiary Audi, and “Volume” around the core brand VW, Blume wants to make more independent, again. Audi boss Markus Duesmann and VW brand boss Thomas Schäfer could gain influence, both of whom came into office at the instigation of Diess. Two other group board members, who are attributed to the Diess ticket because they once worked with him at BMW, are considered shaky candidates, because Blume wants to downsize the group board. Murat Aksel, Board Member for Purchasing, may have to give way, and there is also a lot of talk about Hildegard Wortmann. She stands for a new, positive-minded generation of managers, but many ask: Does a group sales manager really need it? And what about Manfred Döss? The savvy chief lawyer was primarily appointed to the board to contain Herbert Diess.
Oliver Blume, the team player and future VW boss.
(Photo: Sebastian Gollnow/picture alliance/dpa)
How elegantly Blume manages to reduce his board size will be the first test for him. Because in Wolfsburg it’s all about style and implementation. Diess had worn down even the toughest of people with his provocations, which is remarkable because some say their workplace is like a “snake pit”. Now quite a few wish for Blume, the “team player”. He grew up in the group. But can he really bring them together, especially since he has a double job load? Blume not only wants to lead the VW group, but also wants to remain the head of Porsche in the long term. This VW subsidiary is about to go public in the billions. Managing two Dax companies, in Wolfsburg and Stuttgart, but that should not be feasible in the long run even for the highly organized Blume. Even if he does without a number of additional posts that he is actually entitled to, such as the Audi supervisory board chairmanship.
And then there is the question of how Blume, 54, will cope in his new position with the complicated “Wolfsburg system” that is behind everything and that makes all changes so difficult: There is IG Metall with works council chief Daniela Cavallo and union boss Jörg Hofmann, also find the flower great because it is of a friendly nature. This camp also includes Gunnar Kilian, who is Human Resources Director, but on the union ticket – and he is probably the best group expert next to Supervisory Board Chairman Hans Dieter Pötsch. There are the Porsche and Piëch families as the main owners, who mostly stuck by Diess for a long time because he promised them returns and a cultural change, but who were then all too annoyed by the lone fighter management style and the worsening problems in China and with the software.
The families were the deciding factor in the change
It was the families who decided the change, but it was also them who wanted the comparatively smooth transition at the top, including the last business trip to Canada: Because Herbert Diess formed an e-car pioneer from the diesel scandal company. And finally there is the Lower Saxony government, which is about to hold state elections and whose representatives are now probably hoping to benefit from the magic of the new beginning and who want to spend less working time controlling a rough-and-tumble VW boss.
By the way, after his return from Canada, Diess celebrated his walkout in a small group in Wolfsburg. He was at peace with himself, he said it had been the best years of his professional life and that he would have liked to have continued a little longer. Although, he added, the end, his end, actually came at the right time. An exit that he could have staged himself.